Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community and the Environment
• Good Corporate Governance

Environmental Achievements

• Participant of the 3R program with the government to reduce and develop recycle material to be utilize back in the process
• Received “Gold Rated’ certificate from the Leather Working Group (LWG) in the field of environmental management and standards of the tanning industry
• Innovated Protein Producing from waste in the tanning process to be used as chemical in the production

Social Achievements

• Develop human resource to be profesional to response to any customer's need
• Improve community through programs and activity that has benefits to all community
• Company priorities to a friendly environment for every employees. With basis that high quality employee will lead to company’s success.

Governance Achievements

• Focus on good governance and adherence to corporate social responsibility
• Established a corporate governance and business code of conduct policy
• Set up the good governance’s policy

Climate Goals & Targets

Environmental Challenges

• Risk from competition
• Risk from fluctuation of raw material cost
• Risk from staff cost
• Risk from Foreign Exchange Rate Fluctuation

Mitigation Strategies

• Maintain a competitive advantage through large production base, high quality products, and experienced executives.
• Forecast demand, increase bargaining power with suppliers, enter sales contracts in advance, purchase hides and chemicals in advance, and regularly compare prices.
• Regularly determine optimum staff, monitor productivity, apply computer technology, and regularly train staff.
• Match revenue and expense in foreign currency, use forward contracts to hedge foreign exchange rate exposure.

Supply Chain Management

Responsible Procurement

• Consideration of quality, price, and punctuality of delivery

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Chrome Free Leather
• Split leather
• Protein Hydrolysate

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community and Environment Responsibility
• Good Corporate Governance
• Social Responsibility

Environmental Achievements

• Continued investment in reducing waste and processing industrial waste. Expansion of products for dog chews snack business, proteins from leather scrap (industrial waste reused in bleaching and agricultural industry).
• Producing chrome-free leather for shoes, an environmentally friendly material.

Social Achievements

• Involvement in community outreach programs.
• Focus on employee development, training, and benefits.
• Commitment to creating a friendly work environment with proper hygiene and workplace safety.

Governance Achievements

• Adherence to good governance principles.
• Establishment of several committees (Executive Committee, Audit Committee, Remuneration Committee, and Nomination Committee) to oversee company operations and ensure ethical conduct.
• Transparent and verifiable financial reporting and disclosure.

Climate Goals & Targets

Environmental Challenges

• Slowdown and temporary halt to production due to the COVID-19 pandemic.
• Highly competitive leather market (domestically and internationally).
• Fluctuation in raw material costs (hides account for 60% of total cost).
• Increasing labor costs.
• COVID-19 pandemic impact on business operations and supply chain.
• Changes in rules and regulations.
• Foreign exchange rate fluctuations.

Mitigation Strategies

• Strategic plans focusing on further development of products from the genuine leather business to diversify risks (leather shoes, leather furniture, dog chews, and protein for agricultural goods).
• Development of standardized and efficient production processes, increasing production capacity.
• Demand forecasting and advance purchasing of raw materials.
• Sales contracts in advance with reliable suppliers.
• Regular price comparisons to reflect changes in raw material prices.
• Optimum staffing levels in each production line.
• Technology application to improve work quality and efficiency.
• Regular training for employees.
• 100% vaccination throughout the organization, screening, disinfection, mask-wearing, social distancing.
• Establishment of a Rules & Regulation Compliance Framework.
• Matching revenue and expense in foreign currency (Natural Hedge) and use of financial instruments (forward contracts) to hedge foreign exchange rate exposure.

Supply Chain Management

Responsible Procurement

• Advance purchasing of raw materials from reliable suppliers or distributors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards

Certifications: Leather Working Group (LWG) “Gold Rate”, IATF16949, TIS standard No. 523-2554 (Safety Shoes), GMP (Momo & Friend Dog Chews)

Third-party Assurance: EY Office Limited

Sustainable Products & Innovation

• Chrome-free leather
• Dog chews
• Protein from leather scrap

Awards & Recognition

• Tannery of the year award 2018

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Community and Environment Responsibility
• Good Corporate Governance
• Corporate Social Responsibility

Environmental Achievements

• Research and development to produce Protein from raw material wastes through industrial production processes to reduce environmental problems. The Protein product can be used in the leather production process as a replacement for using other chemicals.
• Involved in the 3R program with the government to reduce and develop recycled material to be utilized back in the production process.
• First tannery in Thailand with Leather Working Group (LWG) “Gold Rate” certification.

Social Achievements

• Emphasis on employee value and development through training and seminars.
• Focus on creating a friendly work environment with employee benefits and workplace safety.
• Community outreach and involvement in communities surrounding the company's plants.

Governance Achievements

• Established corporate governance policy and practices published on the company website.
• Established five committees: Board of Directors, Executive Committee, Audit Committee, Remuneration Committee, and Nomination Committee.
• Emphasis on good corporate governance, transparency, and accountability.

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue from Cut Part and Service due to contraction of the automotive industry and slowdown in the Thai economy.
• Global automotive demand slowing due to economic uncertainty and rising interest rates.
• Higher costs and appreciation of the Baht reducing competitiveness in exporting cars.
• Fluctuations in raw material prices.
• Increase in staff expenses.

Mitigation Strategies

• Continuous research and development of new products, especially eco-friendly products.
• Cost-plus margin pricing policy considering order volume, customer relationships, and industry competition.
• Measures to control raw material costs: demand estimation, price negotiation, future purchase contracts, advance procurement, and price comparison reports.
• Measures to control employee costs: efficient staffing, productivity monitoring, technology application, and employee training.
• Framework for reducing risk of changes in regulations, laws, and compliance.

Supply Chain Management

Responsible Procurement

• Negotiation with manufacturers or distributors for raw materials
• Future purchase contracts with trusted manufacturers or distributors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Thai Financial Reporting Standards

Certifications: LWG Gold Rated, IATF16949:2016

Third-party Assurance: EY Office Limited

Sustainable Products & Innovation

• Chrome Free Leather
• Protein Hydrolysate from scrap leather
• Collagen and gelatin production

Awards & Recognition

• Tannery of the year award 2018